Business & Economy
BREAKING: CBN To Stop Sale Of Foreign Exchange To Banks Soon
CBN is ready To Stop the Sale Of Foreign Exchange To Nigerian Banks Soon
Brand News Day Nigeria gathers that the Central Bank of Nigeria (CBN) has indicated that it would halt the sale of foreign exchange to Deposit Money Banks (DMB) by the end of the year.
This online platform confirms that the CBN Governor, Godwin Emefiele, made the disclosure while speaking at the special press briefing at the end of the 364th Bankers Committee meeting on the launch of the bank’s new forex repatriation scheme ‘RT200 FX Programme’ on Thursday, February 10, 2022, at its headquarters in Abuja.
According to the CBN governor, Nigerian banks must begin to source their forex from export proceeds, hence the need to support the non-oil sector of the economy.
The CBN governor in a statement which reads in part, “The era is coming to an end when, because your customers need 100million dollars in foreign exchange or 200 million dollars, you now want to pack all the dollars and pass it to CBN to give you dollars.
“It is coming to an end before or by the end of this year. We will tell them don’t come to the Central Bank for foreign exchange again go and generate their export proceeds”.
BREAKING: CBN To Stop Sale Of Foreign Exchange To Nigerian Banks Soon
He further said, “When those export proceeds come, we will fund them at 5% for you and they will earn rebait. Then you can sell those proceeds to your customers that want 100 million dollars. But to say you will continue to come to the Central Bank to give you dollars, we will stop it.
“Nigeria cannot continue to depend on FX earnings to fund its import obligations from revenue coming from earnings from products where we cannot determine both price and quantity.’’
Under the RT200 FX programme, which is to take immediate effect, the CBN will provide concessionary and long-term loans for business people who are interested in expanding existing plants or building new ones for the sole purpose of adding significant value to the non-oil commodities before exporting same.
These loans will have a tenure of 10 years, with a two-year moratorium and an interest rate of 5%.
The CBN boss during the briefing said that the newly introduced programme will have 5 key anchors which include; Value-Adding Exports Facility, Non-Oil Commodities Expansion Facility, Non-Oil FX Rebate Scheme, Dedicated Non-Oil Export Terminal and Biannual Non-Oil Export Summit.
What is CBN RT200 FX Programme
The RT200 FX Programme which stands for the “Race to US$200 billion in FX Repatriation”, is a set of policies, plans and programmes for non-oil exports that will enable Nigeria to attain a lofty yet attainable goal of US$200 billion in FX repatriation, exclusively from non-oil exports, over the next 3-5 years.
Emefiele pointed out that the decision was in line with the apex bank’s new commitment to boost the country’s foreign reserves through proceeds from non-oil exports.
